LXi REIT has deployed the remainder of the equity from its £175m equity raise last month in a buying spree that includes five Travelodge hotels.
Announcing a further £62.4m of deals, the company said it had purchased the hotels for a combined £45.2m, reflecting a 5.8% initial yield. All of the properties are let to Travelodge and have an average unexpired lease term of 24 years. Located in Aberdeen, Brighton, Liverpool, Llanelli and Nuneaton, they total 387 bedrooms.
Additionally, it has bought a 101,377 sq ft warehouse in Newbury, Berkshire, for £17.2m, reflecting a net initial yield of 5.5%. It is let to Snell Advanced Media.
LXi now also has access to a new £75m, 15-year facility with Scottish Widows with a margin of 1.55%, which when fully drawn will take the company’s loan-to-value ratio to 30%.
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